Best and Cheapest Car Insurance Companies in Philadelphia, PA (2023 Rates)

Travelers not only offers the cheapest car insurance rates in Philadelphia; it is also one of the top insurers when it comes to customer service. It has an average satisfaction reputation but is excellent for complaints, meaning it receives significantly few customer service complaints.

Insurers are not transparent about how they calculate premiums and why one driver pays more than another. But, a poor driving record or credit score and the driver’s age, among other factors, can influence rates. Travelers takes a fair approach, not heavily weighing any factor against another, resulting in very competitive rates for all drivers.

Finding cheap car insurance is very important to drivers in Philadelphia. Residents pay almost twice as much as the state average, with Philly rates being the most expensive in Pennsylvania. Philly drivers also pay more than twice the national average.

With the heavy traffic in Philadelphia, driving violations and accidents occur frequently. Unfortunately, insurers typically raise your rates after you’ve received a ticket for a moving violation, a DUI, or an at-fault accident.

However, State Farm has the cheapest rates in Philadelphia for drivers with violations and at-fault accidents. Its car insurance policies are sold by the largest sales force of any insurer in America, all of whom have offices in the same neighborhoods as their insured.

Philadelphia has the highest accident rate of any city in Pennsylvania, and if you’ve ever driven there, you know why. Alcohol and speed are factors in many crashes in the City of Brotherly Love, which drives rates higher for everyone, especially the driver guilty of the infraction. Finding a company that is less punitive is a factor in many people’s car insurance purchasing decisions.

Although it may seem like a good idea to purchase only the minimum required car insurance coverage in Philadelphia, it is highly recommended for drivers who own newer cars with a higher value than their annual premium to opt for full coverage car insurance instead. Travelers offers the most affordable full coverage option in Philadelphia.

To help you keep your full coverage car insurance premium affordable, Travelers offers car insurance discounts such as bundling, multi-car, good student, safe driving, and paperless communications. Hybrid drivers may also qualify for the alternative energy discount.

It’s important to have affordable full coverage car insurance in Philadelphia to avoid facing high expenses for repairs and legal liabilities that could negatively impact your finances for a long time. Before settling for the minimum required coverage in Philadelphia, obtain quotes from multiple insurance providers for full coverage. You may be pleasantly surprised to find that the price difference is minimal.

Travelers not only wins the first prize for having the cheapest full coverage car insurance in Philadelphia, but it also comes in as the winner for having the cheapest minimum coverage.

There are instances where buying the minimum coverage (liability-only) required by Pennsylvania law ($15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000) to damage to property) is appropriate. For instance, if you own an older model car outright with no lienholder and the vehicle is valued at less than what a full coverage premium would be, carrying minimum coverage may be adequate.

Buying the cheapest liability-only insurance in Philadelphia may be warranted if you have an older car with high mileage and a low resale value. An agent or company offering such low rates can be tempting if you have a newer model car, but make sure you’re not underinsured and leave yourself vulnerable financially.

Nationwide car insurance is the cheapest for teens added to their parent’s policy. Opting for a family policy rather than buying a separate one is a more cost-effective choice for teenagers.

For example, a teen driver in Philadelphia who buys an individual plan will pay $10,149 per year with Nationwide, a price that very few teens can afford. However, adding them to their parent’s policy with Nationwide drops that premium to $2,750 annually.

Because of the high price of individual car insurance for teens in Philly, it’s recommended that teens and their parents compare rates from different carriers. Be sure to compare individual rates versus adding a teen to a parent’s policy. It can save you thousands of dollars per year.

As drivers age, their car insurance increases proportionately. With the high cost of living in Philadelphia and possibly being on a fixed income, seniors are continually on the lookout for low rates and are open to switching carriers if the opportunity to save money presents itself.

Once again, Travelers proves to be the cheapest in providing affordable coverage to this growing demographic. Over 10,000 Baby Boomers turn 65 every day in America, and they are fighting inflation and learning how to live off their retirement income. Travelers has shown a commitment to making car insurance affordable for these older drivers.

Seniors who don’t mind shopping around for car insurance every year can often find lower premiums. Since many seniors in Philadelphia are homeowners, they should be sure to bundle their car and home insurance to get a discount on the auto policy.